The Confederation of British Industry (CBI) has predicted improved UK growth based on low inflation and oil prices.

According to the CBI’s February economic forecast, job creation and wage growth are continuing to show signs of improvement, which coupled with low inflation should help improve UK living standards.

Deputy Director-General of the CBI, Katja Hall, said: ‘UK growth continues to outshine its counterparts in Europe and progress is “steady as she goes”’.

She added: ‘Now is not the time for complacency, but falling unemployment coupled with improving wage growth and rock bottom inflation should mean that people see more money in their pockets.

‘But businesses are looking on anxiously as insecurity continues to troll the Eurozone and instability remains elsewhere’.

A spokesperson from the Treasury said: ‘This is welcome news for households and families, but the job is not yet done so we must keep working through the plan that is delivering economic security in an uncertain world economy’.